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India warns Apple over iOS App Store antitrust delays

India has warned Apple it will move forward with an antitrust case after the company delayed responses to the Competition Commission of India (CCI) for over a year.

The CCI previously found Apple abused its position in the iOS app store market, a charge Apple denies and is contesting in court.

Apple could face fines of up to US$38 billion if penalties are based on its global turnover.

Apple sought to pause the investigation while its court challenge over penalty rules is ongoing, but the CCI rejected the request in a confidential order dated December 31.

The watchdog said Apple received multiple extensions to respond and submit financial details since October 2024, but warned that delays undermine the investigation.

The CCI gave Apple a final deadline, stating it would proceed without further input if no response is received by next week.

Apple did not comment.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

India’s penalty shift could push Apple fines beyond its India revenue

  • The Competition Amendment Act 2023 lets the Competition Commission of India (CCI) base fines on global turnover from all products and services, replacing the Supreme Court’s Excel Crop Care “rational nexus” rule that tied penalties to turnover linked to the violation 1.
  • Apple warns it could face a $38 billion hit based on worldwide revenue from iPhones, Macs, plus services, while the EU uses global turnover only as a cap with penalties tied to the affected market 21.
  • The regulator cites profit shifting that shrinks India revenue, yet this setup can cause regulatory “double jeopardy” when countries punish the same conduct using global turnover 34.

Payment firms and alternative app stores could enter India if CCI orders conduct remedies (behavioral obligations)

  • Investigators called Apple’s App Store an unavoidable trading partner and said mandatory In-App Purchase fees up to 30% shut out third-party payment processors 5. The Director General (DG), the agency’s investigative arm, reportedly found abuse of dominance and the probe logged that iOS blocks third-party app stores 5.
  • Rules like the EU Digital Markets Act, an EU law that requires large gatekeeper platforms to open certain services to rivals, could trigger competing billing for Indian developers and allow new iOS app marketplaces if the CCI orders such changes.
  • Payment players, alternative store operators, plus compliance tool makers should track the CCI’s remedies and study developer responses to Google’s Play billing shift in India after a 9.4 billion Indian rupees (INR) fine; timing hinges on Apple finishing its court fight over the penalty method 5.

Recent Apple developments

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